A closely watched crypto analyst says an Ethereum (ETH) rival, which has exploded by about 600% year to date, is gearing up to take another step higher.
In a new video update, the host of InvestAnswers tells With its 458,000 YouTube subscribers, smart contract platform Solana (SOL) has a lot more fuel in the tank despite already posting huge profits this year.
The analyst looks at Solana’s dominance, which tracks how much of the total crypto market capitalization belongs to SOL. According to the InvestAnswers host, he sees SOL’s dominance rising to 3% in the next market expansion, indicating SOL has more room to grow.
“As for the Solana dominance so far this year, [what] I was surprised that we are at almost 2.2%. The all-time high for Solana in terms of dominance was like 2.5% or something, so we’re early again, but Solana’s dominance is through the roof.
The question is: what happens if the [crypto] market cap goes to $5 trillion?
…Within 18 months or 24 months, or maybe even a year, we could reach a $5 trillion market cap – much of that will obviously be driven by Bitcoin, but I do expect SOL dominance to reach at least 3%. So the question is whether [the] CMC (crypto market cap) goes to $5 trillion [and] SOL dominance goes to 3%, what is the price of SOL?”
The strategist goes on to calculate SOL’s potential price, taking into account the variables of a total crypto market cap of $5 trillion and a 3% dominance rate for Solana. According to the host, Solana should reach the price tag of $363.
“If CMC goes to $5 trillion, that means SOL’s market cap goes to $150 billion and SOL’s current market cap is $31 billion, and that’s a 4.84x [increase] from where we are now. [That figure] times $75 that would cost [Solana’s] price to a ridiculous $363.
Solana is trading at $69.31 at the time of writing. A rise to $363 would represent a 423% increase.
I
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney
